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  5. ENGH: Hi there, ENGH is at a five year plus low, is this justified? [Enghouse Systems Limited]
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Q: Hi there, ENGH is at a five year plus low, is this justified? Is it a good time to begin accumulating?

Dividend is looking good here for a tech company, any concerns here?

Any further help on this one would be appreciated.

Thanks!
Asked by Hussein on June 04, 2024
5i Research Answer:

We don't really have 'concerns' and generally like the management team and the stock. But, for a while now it has had a premium valuation for less-than-premium growth. Valuation has dropped to a more-reasonable 20X earnings now and the yield is approaching 4%. But there needs to be a catalyst here. Forecasted 2025 EPS is less than it was four years ago. It's always had too much cash, and we wish it would make more acquisitions. We can endorse it for income, but we would tone down growth expectations for now. 

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